CELESTICA INC (CLS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock
295.61 USD
-3.79 (-1.27%)
296.3 USD
+0.69 (+0.23%)
CLS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CLS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make CLS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
CLS had a positive operating cash flow in the past year.
Each year in the past 5 years CLS has been profitable.
CLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CLS has a better Return On Assets (10.85%) than 91.13% of its industry peers.
Looking at the Return On Equity, with a value of 35.33%, CLS belongs to the top of the industry, outperforming 95.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.33%, CLS belongs to the top of the industry, outperforming 95.97% of the companies in the same industry.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is above the industry average of 9.30%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(21.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
CLS's Profit Margin of 6.35% is fine compared to the rest of the industry. CLS outperforms 70.97% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 7.33%, CLS is in the better half of the industry, outperforming 70.16% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
CLS has a worse Gross Margin (12.04%) than 76.61% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLS is creating value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
Compared to 1 year ago, CLS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.96 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a better Altman-Z score (6.96) than 83.06% of its industry peers.
The Debt to FCF ratio of CLS is 1.97, which is an excellent value as it means it would take CLS, only 1.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CLS (1.97) is better than 78.23% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that CLS is not too dependend on debt financing.
CLS has a worse Debt to Equity ratio (0.37) than 61.29% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 6.96 |
ROIC/WACC2.62
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
CLS has a worse Current ratio (1.47) than 75.81% of its industry peers.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.88, CLS is not doing good in the industry: 85.48% of the companies in the same industry are doing better.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
The Earnings Per Share has been growing by 48.11% on average over the past years. This is a very strong growth
The Revenue has grown by 22.09% in the past year. This is a very strong growth!
The Revenue has been growing by 10.38% on average over the past years. This is quite good.
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
3.2 Future
The Earnings Per Share is expected to grow by 38.14% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 27.74% on average over the next years. This is a very strong growth
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue Next Year26.52%
Revenue Next 2Y29.69%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 55.99, CLS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CLS is on the same level as its industry peers.
CLS is valuated expensively when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 35.20, CLS can be considered very expensive at the moment.
CLS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, CLS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.99 | ||
| Fwd PE | 35.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLS.
CLS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.4 | ||
| EV/EBITDA | 35.3 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CLS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 43.27% in the coming years.
PEG (NY)1.06
PEG (5Y)1.16
EPS Next 2Y46.37%
EPS Next 3Y43.28%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
295.61
-3.79 (-1.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.88%
Inst Owner Change-5.42%
Ins Owners0.52%
Ins Owner Change12.08%
Market Cap34.01B
Revenue(TTM)11.28B
Net Income(TTM)716.70M
Analysts81.11
Price Target249.46 (-15.61%)
Short Float %3.05%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.15%
Min EPS beat(2)6.6%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)6.73%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.68%
EPS beat(12)12
Avg EPS beat(12)8.66%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)6.2%
Min Revenue beat(2)5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)3.54%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.49%
Revenue beat(12)11
Avg Revenue beat(12)3.14%
Revenue beat(16)14
Avg Revenue beat(16)3.37%
PT rev (1m)0.4%
PT rev (3m)53.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.76%
EPS NY rev (1m)2.21%
EPS NY rev (3m)8.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.35%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)5.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.99 | ||
| Fwd PE | 35.2 | ||
| P/S | 3.01 | ||
| P/FCF | 85.4 | ||
| P/OCF | 61.57 | ||
| P/B | 16.76 | ||
| P/tB | 24.08 | ||
| EV/EBITDA | 35.3 |
EPS(TTM)5.28
EY1.79%
EPS(NY)8.4
Fwd EY2.84%
FCF(TTM)3.46
FCFY1.17%
OCF(TTM)4.8
OCFY1.62%
SpS98.07
BVpS17.63
TBVpS12.28
PEG (NY)1.06
PEG (5Y)1.16
Graham Number45.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROCE | 26.62% | ||
| ROIC | 21.33% | ||
| ROICexc | 23.67% | ||
| ROICexgc | 30.35% | ||
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% | ||
| FCFM | 3.53% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexgc growth 3Y31.4%
ROICexgc growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 94.54% | ||
| Cap/Sales | 1.37% | ||
| Interest Coverage | 15.59 | ||
| Cash Conversion | 55.82% | ||
| Profit Quality | 55.56% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 6.96 |
F-Score7
WACC8.13%
ROIC/WACC2.62
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)47.9%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%51.92%
EPS Next Y53.05%
EPS Next 2Y46.37%
EPS Next 3Y43.28%
EPS Next 5Y38.14%
Revenue 1Y (TTM)22.09%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%27.79%
Revenue Next Year26.52%
Revenue Next 2Y29.69%
Revenue Next 3Y30.76%
Revenue Next 5Y27.74%
EBIT growth 1Y62.33%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year67.79%
EBIT Next 3Y43.39%
EBIT Next 5Y38.43%
FCF growth 1Y48.75%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y40.82%
OCF growth 3Y27.84%
OCF growth 5Y6.55%
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 7 / 10 to CLS.
What is the valuation status of CELESTICA INC (CLS) stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
What is the profitability of CLS stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
What is the valuation of CELESTICA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CELESTICA INC (CLS) is 55.99 and the Price/Book (PB) ratio is 16.76.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 7 / 10.